Bankruptcy Do’s & Don’ts

On behalf of Powell Law Offices, P.C. posted in personal bankruptcy on Friday, January 23, 2015.

Going through bankruptcy can be a scary and intimidating time in your life. With aggressive creditors stopping at no end to get what they are owed, it may seem like every second must be a serious financial calculation. When you are desperately considering the next step to take, remember that bankruptcy is an option meant to allow you relief and a new financial future. Since filing is so serious, you want to make sure that everything you do is in your best interest and helps you progress towards a start fresh in your financial future.

How to Handle Bankruptcy

If you decide to file, it important to know what actions you can take to help you reach your end goal in an efficient amount of time. While there are actions you can take to benefit your case, there are also plenty of missteps you could stumble over that hurt your case and prevent you from moving on.

Some things you should DO before bankruptcy:

• Set a reasonable monthly budget and abide by it
• Attend credit counseling to learn where you could improve your budgeting and spending
• Determine the value of your important assets
• Educate yourself about the bankruptcy process
• Provide all requested documents and information to your attorney without hiding information
• Continue making payments on assets you’d like to keep

When filing for bankruptcy, be sure to AVOID:

• Transferring important assets out of your name to a friend or family member
• Making large purchases outside of your financial range
• Using credit cards to obtain a cash advance
• Paying off one specific creditor instead of making payments to all
• Filing before you receive a big tax return or inheritance
• Assuming that all debts will be eliminated in bankruptcy
• Giving or selling off property to anyone without speaking to your lawyer

For any additional questions or concerns that you have about your bankruptcy filing, you should take the time to speak with an attorney who can oversee your case from start to finish.

Before taking any steps, speak with an Irving bankruptcy attorney at Powell Law Offices, PC today!